CMAT 2026 Innovation and Entrepreneurship Preparation Tips with Sample Questions

CMAT Innovation and Entrepreneurship questions are easy. Basic knowledge of business studies and entrepreneurship will be enough to crack this section of CMAT 2026. Know all about CMAT Innovation and Entrepreneurship section. Also get sample questions for practice. 

CMAT preparation tips for Innovation and Entrepreneurship section

Innovation and Entrepreneurship of CMAT is a high scoring section but you will need to be thorough with the basics. It is a unique section but not tough to crack. This section is a lot like Business Studies subject of Commerce stream. For preparation, CMAT Innovation and Entrepreneurship book and PDF material will be enough along with and past five years' CMAT question papers.

In the exam, pick this section after English, Quant and DILR. CMAT Innovation and Entrepreneurship questions are straightforward and easy and you will not take much time in addressing them. CMAT 2026 exam is scheduled to be held on January 2025, so in these last few days, practice as many questions as you can.

CMAT 2026: Innovation and Entrepreneurship Preparation

To prepare for the CMAT Innovation and Entrepreneurship section, first understand the key elements of this subject. Check below a few key points: 

Understanding CMAT Innovation and Entrepreneurship Pattern and Syllabus

Syllabus of Innovation and Entrepreneurship CMAT section includes topics related to business. You should focus on the following topics:

• Basics of Entrepreneurship
• Types of Entrepreneurs
• Business Idea Generation
• Startup and Unicorns
• Startup Ideas and launch
• Business Models & Plan
• Intellectual Property Rights (IPR)
• Innovation Management
• Government Schemes & Policies for Entrepreneurship
• Famous Entrepreneurs

Study Routine for Innovation and Entrepreneurship CMAT 

Innovation and Entrepreneurship is an easy subject. One doesn't require a lot of time to prepare for it. You can dedicate 2 hours daily to this section in the last month of CMAT 2026 preparation. It will be enough. Here's what you need to do:

• Read and understand the topics 
• Watch videos and understand key business terms and jargons
• Practice sample questions and test series
• Memorise important events and defiinitions 

What is Innovation and Entrepreneurship in CMAT?

Innovation and Entrepreneurship section of CMAT 2026, section is basically all about business knowledge. Study of this subject involves understanding types of businesses, market, supply, innovation, managing resources, generating revenue, etc. To crack this section candidates need to know the following:

• Concepts of innovation and business
• Innovation of the life cycle
• Entrepreneurship and start ups
• Entrepreneurial development
• Strategies of starting a venture
• Types of start ups
• Entrepreneurship and government policies

Difference Between Entrepreneurship vs Business

Check below key differences between Business and Entreprenuership. This is critical to understanding the Innovation and Entrepreneurship CMAT:

Who is an Entrepreneur?

An entrepreneur is someone who has the ability and desire to establish, operate and succeed in a startup venture along with risk entitled to it, to make profits. The entrepreneurs are considered innovators or the source of new ideas who revolutionise the market by replacing the old with their new invention.

What is Entrepreneurship?

Entrepreneurship can be defined as the ability and efforts to develop, organize and run a business enterprise in order to make a profit. The entrepreneur has to be aware of risks involved and have the willingness to take those risks.

Types of Entrepreneurship

• Small Business Entrepreneurship: This is referred to as those businesses, which are set up by individuals for self-sustenance and self-employment such as grocery store, non-essential and essential items shops, tailoring, salon, consultancy, ticketing & travel agency, etc. This type of business doesn’t require capital from the market.
• Scalable Startup Entrepreneurship: A business started with a new idea aiming to grow into a profitable company can be defined as a Scalable Startup. This type of business model requires external capital for expansion. The most famous examples of scalable startups are Facebook, Skype, and Twitter.
• Large company Entrepreneurship: This type of entrepreneurship refers to new businesses established within the existing business with the aim of becoming the market leader in the said field. It includes huge investments, solid infrastructure and innovative products to beat competition.
• Social Entrepreneurship: As the term suggests, this type of entrepreneurship refers to the business set for catering to social needs and contributing to welfare of vulnerable sections of the society. The sole aim of Social Entrepreneurship is not profit.

Characteristics of an Entrepreneur

An entrepreneur is not a professional. An entrepreneur is a someone who is a leader, who is a visionary, who is a risk taker and who has the drive to convert an idea in to reality. Some of the key characteristics of an entrepreneur are given below:

• Risk taker
• Innovative
• Visionary
• Leadership qualities
• Flexibility
• Knowledge

CMAT Innovation and Entrepreneurship Syllabus

Given below is are the topics included in the syllabus of Innovation and Entrepreneur section of CMAT exam 2026. Candidates must go through these topics in detail:

• Concepts of Entrepreneurship
• Overview of Entrepreneurship
• Evolution of Entrepreneurship in India
• Role of Entrepreneurship in Economic Development
• Theories and Models of Entrepreneurship
• Framework of Entrepreneurship Theories
• Models of Entrepreneurship
• Emerging Models of Corporate Entrepreneurship
• Dimensions of Entrepreneurship
• Entrepreneurial Society
• Entrepreneurial Culture
• Rural Entrepreneurship
• Women Entrepreneurship
• Emerging Trends in Social Entrepreneurship
• Principles of Business Organisation
• Motivation, Communication and Leadership

CMAT Innovation and Entrepreneurship Books

Apart from previous years' CMAT question papers, refer to the following recommended books for CMAT Innovation and Entrepreneurship:

• Innovation & Entrepreneurship by Peter F. Drucker
• Entrepreneurship & Innovation Management by R Gopal
• Entrepreneurship by Robert D. Hisrich

Also Read:

In CMAT, the questions in Innovation and Entrepreneurship section will be based on these concepts. The questions will be in MCQ format and candidates will be required to select the right or closest option. Check out below some of the Innovation and Entrepreneurship questions from CMAT 2021 question paper.

CMAT Innovation and Entrepreneurship questions for practice

Q: What is the title of the Authorised Biography of JRD TATA?

A: My Times: An Autobiography

B: Beyond the Last Blue Mountain

C: Ace Against Odds

D: Wings of Fire

Q: The process of gathering information about market or socio-economic trends is called:

A: Need for achievement

B: Tenacity

C: Neuroticism

D: Environmental Scanning

Q: India’s first live Payments Bank was launched by:

A: Aditya Birla Idea

B: Cholamandalam

C: Bharti Airtel

D: Paytm

Q: Which city is ranked as one of the world’s five fastest growing startup cities?

A: Cochin

B: Ahmedabad

C: Bangalore

D: Nagpur

Q: A business where an individual is both the owner and conductor of the business affairs is called:

A: Proprietorship Firms

B: Partnership Firms

C: Private Limited Company

D: None of the above

Q: Which of the following is not one of the traits of an entrepreneur?

A: Opportunity Exploration

B: Perseverance

C: External locus of control

D: Risk Taking

Q: Venture Capital Financing is _____

A: Type of financing by venture capital.

B: It is private equity capital provided as seed funding to early stage

C: Investment in blue chip companies for assured return

D: It is a high risk investment made with an intention of creating high returns

E: Done in technology products only

Q: Statement I: Cost Benefit Analysis (CBA) measures a project’s societal effects and does cost and benefits comparable in monetary terms.

Statement II: CBA is most widely applied tool for the appraisal of transport project.

In the light of above statements, choose the correct answer from the options given below:

A: Both statement I and statement II are true

B: Both statement I and statement II are false

C: Statement I is true but Statement II is false

D: Statement I is false but Statement II is true

Q: Which of the following funding sources is specifically aimed at helping early-stage start-up?

A: Series funding

B: Angel investment

C: Corporate bonds

D: Initial Public Offering (IPO)

The section will also have passage based questions.

CMAT Previous Year's Question Papers for Practice

Practice Free CMAT Mock Test by Shiksha

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